Friday, December 16, 2011

Gold Price Ready to Go Down Again


After falling for three consecutive days, on Friday trading on the New York Mercantile Exchange early this morning (16.12.2011), the price of gold has increased though thin. Gold price rebounds after three consecutive days before declining quite large.

The price of gold futures contracts on the NYMEX for January 2012 decreased by U.S. $ 9.70 and closed at US$ 1577.20 per troy ounce (31.1 grams). Meanwhile, spot gold prices experienced a slight decline of 0.2 percent and ended at position US$ 1571, 00 per troy ounce.

During the past month the price of gold has declined by 9 percent. Concerns about economic conditions resulted in the European market is still wary of this precious metal price movements.

Gold is also still shadowed by the sell towards the end of the year. Hedge funds have forced to sell gold after getting margin calls and are also closing position of hedge funds. Sell-off towards the end of the year would normally be due on the assets which prints an annual increase rate is high enough.

This condition was expected to make the price of gold could drop to US$ 1400 in the near future. Moreover, the lack of new stimulus measures from the U.S. central bank (the Federal Reserve). The strengthening of U.S. dollar is also the negative news for gold.

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2 comments:

there is always a chance to get profit when the price up or down. for some people that's bad, but for other it is a good chance to make profit in the future.

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